Presence of Legal Intention and Consideration in a Contract

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Contents
Solution 1.........................................................................................................................................2
Issue.............................................................................................................................................2
Rule..............................................................................................................................................2
Application...................................................................................................................................3
Conclusion...................................................................................................................................4
Solution 2.........................................................................................................................................4
Issue.............................................................................................................................................4
Rule..............................................................................................................................................4
Application...................................................................................................................................5
Conclusion...................................................................................................................................5
Reference List..................................................................................................................................6

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Solution 1
Issue
Is there a presence of legal intention and consideration between Curtis and Jasmine resulting an
enforceable contract?
Rule
Every country is governed by laws which are segregated in civil and criminal laws. Civil laws
govern the relationship amid two private parties and one of the significant laws includes the law
of contract. A contract rule governs the relationship between two parties of private nature and
establishes the commands which must be followed by them and if such commands that are made
part of the contract are not followed, then, they must face liquidated, compensatory, restitution
etc kind of damages.
A contract is a kind of agreement which has the legal approval and wherein the parties can seek
the doors of court at the time of conflicts. No contract can be made unless all of its elements are
fulfilled with. The main elements in any contract includes an agreement, that the parties must be
capable, have lawful mindset and consideration (Carlill v Carbolic Smoke Ball Co [1893].
(Graw et.al 2015)
Now, it is assumed that there is presence of an agreement, that is, an offer and an acceptance, and
thus the presence of consideration and legal intention is evaluated.
Lawful intention establishes that when the parties swap promises then they intent to abide by the
promises in law. In simple words if there is any kind of tussle that originates between the parties
then they are willing to seek redressed from court. The presence of legal intention is considered
to be the basis to convert any agreement into an enforceable contract. (Graw et.al 2015)
Now, the presence of legal intention is analyzed on the basis of relationship that is captured amid
the parties, that is:
i. Family/friendly/domestic relations- When the parties are sharing the relationship
which is amicable in nature, then, the parties are considered to be in the mindset
which portrays that they do not wish to take legal recourse on the incurrence of
conflicts amid the contractual parties. In Woodward v Johnston [1992], the wife
decided to assist her spouse in business and in return the husband will provide 10% of
the same. Later the husband refused. The court held that the relationship of a wife-
husband is coordinal and family in nature and there should be no doubt that they are
not having any legal intention and thus such kinds of contracts have no legal sanctity.
ii. Commercial/business relations- When the parties are sharing commercial
relationship, then, there are no friendly terms amid the parties. Rather, the parties are
commercially dealing with each other and the law has made the presumption that
there is no legal intention. In Esso Petroleum Ltd v Commissioners of Customs and
Excise [1976], Esso agreed to gave cons to the motorist who purchased its business
and teh court held that there was legal intention to be bound by the same. (Graw et.al
2015)

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Rebuttable of presumption – The above submissions are the general presumptions that are laid
down by the courts with the passage of time. But, the rules are not strict and it is found in Todd v
Nicol [1957]. In the given case, Mrs Nicol requested her sister in law and niece too live with her
and later will transfer the house in their name. The plaintiff’s move from Scotland on the pretext
of the promise made by Mrs Nicole. The court held that the parties are in domestic relationship
but still have the circumstances which portrays that the parties have legal intention.
Likewise, even if the parties are found to be in marketable relationship, but, if the circumstances
portray so, then, it is not necessary that there should be lawful intention and at times the
promises are not enforceable in law. (Graw et.al 2015)
Now,
Apart from legal intention, another element that is required to make any contract enforceable is
consideration. The price which is paid for the other persons promise is called consideration In
Thomas v Thomas (1842), following the wish of Mrs Thomas, the house was allowed to be
occupied for 1 pound per year and the consideration was held valid. It is from the promisee from
which the consideration is moved and which results in the enforceability of the promises in law.
Some of the fundamental principles with respect to consideration includes: (Graw et.al 2015)
i. Consider ion should not be supporting any past promises but must be for the future or
present promises. In Stylk v Myrick (1809), there was no consideration that was given
by crew for the promise made by the captain and thus the promise was not
enforceable;
ii. The sufficiency of consideration is relevant to make it valid and is held in Thomas v
Thomas (1842);
So, the contract which is made in the absence of consideration has no sanctity in law. Such
contracts are informal in nature and in order to convert it in formal contract, it is necessary that
there should be valid consideration.
Application
It is assumed that there is presence of offer and acceptance between Curtis and Jasmine. Now, a
valid contract can only be made amid the parties provided the consideration and lawful intention
also exists.
Now, Jasmine and Curtis met. They are linked through LinkedIn. The issue is now resolved.
Curtis is need of help from Jasmine to revive her business as she was facing a downfall because
of online business. Jasmine agreed to help Curtis. Jasmine presented a brief outline to Curtis and
suggested that if Curtis will follow the brief outline then the business will have a great increase.
Curtis follows the plan of Jasmine. It was also agreed amid the parties that jasmine will keep on
helping Curtis in every 15 days in every four months. $600 is to be paid for every session. Also,
free hand was provided to Jasmine to put the marketing material together. Jasmine was very
happy to receive free hand and thus agreed.
Now, it is submitted that the association that is established amid Curtis and Jasmine emphasis
that they both are intending to comply with the arrangement that is made amid them legally.
Curtis agreed to pay $600 to Jasmine only if jasmine will provide fortnight advice and free hand
is provided. The promises that are made amid them have supporting consideration.